Republican senator Cynthia Lummis thinks transferring gold stockpiles to Bitcoin might boost government budgets.

Lummis, a cryptocurrency advocate, thinks a strategic Bitcoin reserve might boost the dollar's status as the world's reserve currency and lower the country's debt.

She also claimed Bitcoin, which is approaching $100,000, may provide big rewards.

Lummis suggests that establishing a strategic reserve is crucial for implementing Bitcoin, a "gold standard digital asset."

The Bitcoin Strategic Reserve will provide a safe financial mechanism for the government and other entities to hold Bitcoin long-term.

The reserve will have decentralized storage. A decentralized network of safe Bitcoin storage facilities can shield U.S. assets from centralized risks and weaknesses. Distributing storage facilities across areas reduces dependency on one place.

The government will buy 200,000 BTC every year for five years. Bitcoin's strategic reserve should reach 1 million BTC. Regular purchases will prevent price swings and guarantee stability.

The reserve will hold all Bitcoin for 20 years.

Centralization and efficient asset management will be achieved by transferring all Bitcoins from other government entities to the strategic reserve. States may create segregated accounts to deposit or withdraw Bitcoin assets as required to participate in this reserve.

Government authorities cannot take legitimately held Bitcoin assets, hence the proposal will be supported. Americans will feel confident and motivated to keep their Bitcoins autonomously.

Foundation for Research on Equal Opportunity (FREOPP) head Avik Roy doubts a Bitcoin strategic reserve can assist the U.S. solve the financial issue.

Avik Roy told the North American Blockchain Summit 2024 in Dallas that Lummis's proposal won't help pay off the $35 trillion national debt.